Narberth residential property held on a long lease is a wasting asset as the leaseholder merely owns the property for a set term.
It is generally accepted that a property with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service gives you enhanced control over the value of your Narberth leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last year Dexter, came seriously close to the eighty-year mark with the lease on his one bedroom apartment in Narberth. Having purchased his flat 19 years ago, the unexpired term was of minimal importance. by good luck, he became aware that he needed to take steps soon on a lease extension. Dexter was able to extend his lease just under the wire in August. Dexter and the freeholder via the managing agents ultimately agreed on sum of £5,000 . If the lease had dipped below 80 years, the figure would have escalated by at least £975.
Last Autumn we were contacted by Mr V Davies , who was assigned a lease of a basement flat in Narberth in September 1998. The dilemma was if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Comparative homes in Narberth with 100 year plus lease were in the region of £285,000. The mid-range amount of ground rent was £55 billed yearly. The lease ran out on 13 October 2104. Considering the 79 years remaining we approximated the premium to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of costs.
Last year we were phoned by Ms K Ward , who took over the lease of a studio flat in Narberth in January 1997. The dilemma was if we could approximate the premium would be for a ninety year lease extension. Comparable homes in Narberth with an extended lease were worth £193,400. The average amount of ground rent was £65 billed per annum. The lease ran out in 2084. Having 59 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £21,900 and £25,200 exclusive of costs.